Franchising in France has an average 10% growth since 2000; in 2013 the total turnover from franchises was about EUR47.4 billion. Franchising systems are mainly used in, but not limited to, the following sectors:
- food (8.73%),
- personal equipment (20.71%),
- hairdressing and aesthetics (8.67%),
- supply of other services to individual customers (10.47%),
- household equipment (7.39%)
- and fast food (8.84%).
Furthermore, approximately 30% of French franchised networks have expanded to many foreign countries. Franchising can be a suitable model for the activities of a foreign company, it provides many advantages that will be discussed in this article which aims at giving you the basic knowledge regarding French regulations so that you can decide wether a franchise is the best solution for your business model.
French national law allows a foreign franchisor to enter into a franchise agreement without establishing a wholly-owned subsidiary or a branch office in France and there are no rules that restrict the setting up of branches, subsidiaries or joint ventures by a foreign-owned business. Moreover, France does not currently enforce any exchange control regulations against any currency, therefore making payments to a foreign franchisor in any currency simple. That being said, certain rules do apply.